Who must the insurance policies obtained by the Advanced Mobile Iv And Amiv franchisee insure?
Advanced_Mobile_Iv_And_Amiv Franchise · 2023 FDDAnswer from 2023 FDD Document
The policy or policies will insure against our vicarious liability for actual and (unless prohibited by applicable law) punitive damages assessed against you.
All insurance policies you obtain will contain a blanket waiver of the insurer's rights of subrogation in respect of or against us and our officers, agents, employees and representatives; and will not contain any insured vs. insured exclusion clause, but will contain a severability clause providing that each the policy will be treated as though a separate insurance policy had been issued to each named insured.
We may require you to increase the minimum limits of and types of coverage to keep pace with regular business practice and prudent insurance custom.
Source: Item 23 — RECEIPTS (FDD pages 54–202)
What This Means (2023 FDD)
According to Advanced Mobile Iv And Amiv's 2023 Franchise Disclosure Document, the insurance policies that the franchisee obtains must insure against Advanced Mobile IV's vicarious liability. This coverage extends to both actual and, unless prohibited by law, punitive damages assessed against the franchisee.
In practical terms, this means that the franchisee's insurance must protect Advanced Mobile Iv And Amiv from financial losses resulting from the franchisee's actions or negligence. This is a common requirement in franchising, as the franchisor's brand reputation can be affected by the actions of individual franchisees. By requiring franchisees to carry insurance that covers the franchisor's vicarious liability, Advanced Mobile Iv And Amiv aims to mitigate its financial risk and protect its brand.
Additionally, all insurance policies obtained by the franchisee must include a blanket waiver of the insurer's rights of subrogation against Advanced Mobile Iv And Amiv, its officers, agents, employees, and representatives. The policies must also not contain any insured vs. insured exclusion clause, but must contain a severability clause, treating each insured party as if a separate policy had been issued to them. Advanced Mobile Iv And Amiv retains the right to increase the minimum coverage limits and types to align with standard business practices and prudent insurance customs.